Home equity loans are a kind of loan secured by real estate and lenders who rely on equity in the property provide them. To find out how much equity is on your property, they subtract total debts from the price of a home. To home equity lenders, equity is more important than the credit score which banks rely on to make their lending decisions. Our loan experts have lots of experience in giving home equity loans in London, Ontario.
A home equity loan is usually a 7%-15% open initial or second mortgage on a property. An open mortgage is so called because the client is free to end it when they like but not without a penalty fee of three months interest. Paying early might help your chances for approval as the positive behavior reflects positively in your credit report. The equity in your home can be used to actualize your goals and because creditors are flexible, it can be spent, as you like. Our seasoned loan experts can discuss your best custom options to help you choose the right products for your situation.
Popular Custom Choices Include
Many more of your custom choices can be written in the mortgage agreement and thankfully our consultants are ready to help you make the best decision according to your needs.
Lenders determine how much you can get by calculating your home’s loan to value ratio. This metric also known as LTV is calculated by dividing the total value of mortgages on a house by its current selling price in that market. Our network of home equity lenders in London lend up to 85% LTV on the property and while this is the most important factor; some lenders may be also sensitive to employment history and credit score.
People are free to use this loan as they like and our company has heard several reasons for needing it. They use the money to pay school fees, home renovations, and living expenses but a few also use it to fund a business project, buy a car, or pay for a vacation. The best way to use home equity loan money depends on your needs.
People also rely on this money to stop the power of sale, foreclosures and pay for emergency medical expenses.
A home equity loan is an installment loan, with fixed interest rates and payment amounts but a home equity line of credit (HELOC) is like a credit card, whose interest rates are flexible. Home equity line of credit is a revolving type whose terms are subject to change while the terms of a home equity loan remain rigid. The money from a line of credit can be withdrawn at any time as long as the borrower remains within the credit limit. For a home equity loan, however, you have to contend with an initial large amount and wait for a new contract to allow withdrawal of more funds. Home equity loans and home equity lines of credit have many differences but there is one similarity in that both types of financing are approved depending on property’s LTV. We work with professional and experienced loan experts who are ready to explain the best home equity solutions to brighten your financial future.